The total reduction in oil production by OPEC+ countries by the end of 2024 will be 3.66 million barrels per day from the level of October 2022. This was stated by Deputy Prime Minister of the Russian Federation Alexander Novak on June 4 following the results of the ministerial meeting of the member countries of the organization in Vienna.
“This is voluntary, but will depend on the required production level agreed at the thirty-fifth OPEC+ ministerial meeting on June 4, 2023. The total reduction in production by OPEC+ countries until the end of 2024 will be 3.66 million barrels per day from the level of October 2022,” Novak.
He clarified that Nigeria, Congo and Angola can reduce oil production following the results of an independent examination of three companies that evaluate the countries’ production capacity in the field of oil production. According to the minister, thanks to data from these sources, OPEC will be able to decide which course to follow.
“We see a balance of supply and demand in the global market, including thanks to the decisions taken by OPEC+. Today we are seeing an increase in demand, especially in the summer, due to the growth of air traffic, Novak said.
The deputy chairman of the government also stressed that the previously announced conditions of May this year for a voluntary reduction in oil are currently being overfulfilled.
Earlier in the day, it became known that following the last meeting in Vienna, OPEC + countries agreed to adjust the overall level of oil production to 40.46 million barrels per day from 2024. However, Novak said Russia would also extend its voluntary cut in oil production by 500,000 barrels per day for the entire next year.
At the same time, Saudi Arabia in July 2023 will additionally reduce oil production by 1 million barrels per day for a month with the possibility of a further extension.
On April 2, some OPEC+ countries (Algeria, Iraq, Kuwait, Saudi Arabia, Russia) decided to reduce oil production. Thus, Saudi Arabia voluntarily reduced oil production by 500,000 barrels per day from May to the end of this year.
On October 5, 2022, OPEC+ members agreed to cut oil production by 2 million barrels per day starting in November, extending the deal until the end of 2023. Despite the energy crisis and rising energy prices in other regions, this step was supported by all members of the alliance, including Russia.
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